Question

A dealer buys an article at a discount of 30% from the wholesaler, the marked price being ₹ 12,000. The dealer sells it to a customer at a discount of 10% on the marked price. If the sales are intra-state and the rate of GST is 5%, find:

1. the amount paid by the customer for the article.
2. the tax under GST paid by the dealer to the State government.
3. the amount of tax under GST received by the Central government.

Answer 1

Given:

Marked Price (MP) = ₹ 12,000

Discount to dealer = 30%

Discount to customer = 10% on MP

GST rate = 5%

Intra-state sale ⇒ CGST 2.5% + SGST 2.5%

Purchase price (before GST): 

30% of 12,000 = 3,600

Purchase price = 12,000 – 3,600

= ₹ 8,400

GST on purchase = 5% of 8,400 

= ₹ 420

Selling price (before GST): 

10% of 12,000 = ₹ 1,200

Selling price = 12,000 – 1,200

= ₹ 10,800

GST on sale = 5% of 10,800

= ₹ 540

(i) 10,800 + 540

= ₹ 11,340

(ii) 270 – 210

= ₹ 60

(iii) Total CGST received = `2.5/100xx10800`

= ₹ 270